Onity Group Restructures Reverse Mortgage Servicing Operations

Claim 55% Off TipRanksUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks Onity Group ( (ONIT) ) has issued an update. On April 30, 2026, Onity, via Onity Mortgage Corporation, amended its deal with Finance of America Reverse to sell reverse mortgage servicing rights on about 20,000 Ginnie Mae HECM loans with $5.1 billion unpaid principal, along with its reverse mortgage pipeline, and will exit most reverse originations while retaining a three-year reverse subservicing role. The transaction, expected to close in the third quarter of 2026 subject to approvals, is estimated to generate $105–115 million in gross cash proceeds and $70–80 million in net proceeds, and accompanies first-quarter 2026 results showing higher revenue and servicing growth but an adjusted pre-tax loss amid rate volatility, plus share buybacks, new debt financing, and a corporate rebranding of its mortgage unit. The most recent analyst rating on (ONIT) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Onity Group stock, see the ONIT Stock Forecast page. Spark’s Take on ONIT Stock According to Spark, TipRanks’ AI Analyst, ONIT is a Neutral. The score is held down primarily by high leverage and very weak cash flow despite improved reported profitability. Technicals are also bearish with the stock below key moving averages and negative MACD. Offsetting these, valuation appears very cheap (P/E ~2) and the latest call provided constructive 2026 ROE guidance and growth/liquidity initiatives, but execution risks (delinquencies and transition/restructuring costs) remain meaningful. To see Spark’s full report on ONIT stock, click here. More about Onity Group Onity Group Inc. is a leading U.S. non-bank financial services company focused on mortgage servicing and originations through its Onity Mortgage Corporation subsidiary. As one of the nation’s largest mortgage servicers, it provides technology-enabled, customer-centric servicing and lending programs to consumers and business clients from its West Palm Beach, Florida headquarters and international operations. Average Trading Volume: 62,348 Technical Sentiment Signal: Buy Current Market Cap: $402.2M Find detailed analytics on ONIT stock on TipRanks’ Stock Analysis page.